BILL NUMBER: SJR 12	CHAPTERED  07/02/99

	RESOLUTION CHAPTER   53
	FILED WITH SECRETARY OF STATE   JULY 2, 1999
	ADOPTED IN ASSEMBLY   JUNE 28, 1999
	ADOPTED IN SENATE   MAY 24, 1999
	AMENDED IN SENATE   MAY 24, 1999
	AMENDED IN SENATE   MAY 10, 1999

INTRODUCED BY   Senator Escutia
   (Coauthors:  Senators Alarcon, Alpert, Baca, Bowen, Burton,
Chesbro, Costa, Dunn, Figueroa, Hayden, Hughes, Johnston, Karnette,
Murray, O'Connell, Ortiz, Peace, Perata, Polanco, Schiff, Sher,
Solis, Speier, and Vasconcellos)
   (Coauthor:  Assembly Member Lowenthal)

                        APRIL 15, 1999

   Senate Joint Resolution No. 12--Relative to housing.


	LEGISLATIVE COUNSEL'S DIGEST


   SJR 12, Escutia.  Relative to housing.
   This measure would memorialize the President and Congress of the
United States and the federal Department of Housing and Urban
Development to establish policies and funding priorities that will
ensure the preservation of the inventory of federally assisted
housing in California.




   WHEREAS, There are 240,000 people in California residing in
federally assisted project-based Section 8 housing units.  Forty-four
percent of Section 8 residents are elderly, and the median income of
Section 8 residents is $9,300.  Without Section 8 and comparable
assistance, many of these households will become homeless; and
   WHEREAS, The Department of Housing and Urban Development (HUD) has
typically provided all capital and operating subsidies for public
housing.  In 1974 Congress created the new housing production program
known as the Section 8 New Construction and Substantial
Rehabilitation Program, under which HUD typically provided a 20-year
commitment for rental subsidies that assured owners a specified level
of rental income; and
   WHEREAS, Property owners may convert their properties to
market-based housing when their Section 8 contracts expire with HUD.
Dramatic rent increases occurring in a number of housing markets in
this state have already inspired many property owners to opt out of
Section 8 subsidies, thus eliminating vast resources for low-income
housing and potentially increasing levels of homelessness throughout
the state.  In California, owners of approximately 10,500 formerly
affordable HUD units have converted to market rate use in the past
two years; and
   WHEREAS, Every county in California has buildings with
project-based Section 8 units, and will be severely affected by the
loss of affordable units.  The largest concentrations are in Los
Angeles County, the San Francisco Bay Area, San Diego, and
Sacramento; and
   WHEREAS, Recent federal housing policy and budget decisions have
led to uncertainty over the current federally assisted housing
inventory in California.  Those decisions will place increasing
demands on the financial and administrative resources of the state to
maintain that housing inventory; and
   WHEREAS, The federal fiscal year 1999 budget provides insufficient
funding to preserve most of the below market housing stock; and
   WHEREAS, The federal fiscal year 2000 budget will need $1.3
billion in additional budget authority to fund all contract
extensions on current Section 8 projects.  HUD's initiative to
provide $100 million to increase contract rents at below market
properties was rejected by the Office of Management and Budget; now,
therefore, be it
   Resolved by the Senate and Assembly of the State of California,
jointly, That the Legislature of the State of California memorializes
the President and Congress of the United States and the Department
of Housing and Urban Development to establish policies and funding
priorities that will ensure the preservation of the inventory of
federally assisted housing in California; and be it further
   Resolved, That the Secretary of the Senate transmit copies of this
resolution to the President and Vice President of the United States,
to the Speaker of the House of Representatives, to each Senator and
Representative from California in the Congress of the United States,
and to the Secretary of the Department of Housing and Urban
Development.
